Meta Platforms is bracing for its first EU antitrust fine for allegedly leveraging its dominance by intertwining its classified ads service, Marketplace, with its Facebook platform. This regulatory move comes over a year and a half after the European Commission accused the tech giant of unfairly favoring Marketplace by bundling it with Facebook, thus stifling competition.
The Commission’s investigation also highlighted concerns about Meta’s dominance in the market, accusing the company of imposing unfavorable trading conditions on competing classified ad services that use Facebook or Instagram for advertising. The fine could potentially reach up to $13.4 billion, representing 10% of Meta’s global revenue for 2023, though fines are typically lower than the maximum cap.
The final decision is anticipated by September or October, ahead of the departure of EU antitrust chief Margrethe Vestager in November. While the Commission has declined to comment, Meta has maintained that the allegations are unfounded, expressing a commitment to collaborating with regulators to prove that its innovations benefit consumers and foster competition.
In a related development, Meta recently faced accusations from the Commission for not complying with new tech regulations, particularly concerning its pay-or-consent advertising model introduced last November.
